ChexSystems: Who They Are and How it Affects You
ChexSystems is a company that maintains a subscriber membership service used in the banking industry. The members consist mainly of Banks, and Credit Unions, but can include other types of Financial Institutions. It provides its members with what it calls deposit account verification services. The members use the information that ChexSystems provides to identify applicants that have had what they classify as a suspect banking history. ChexSystems maintains a central database containing all of the information that has been reported to them. This information is shared among the network of member banks and credit unions to assess the level of risk in opening new accounts. When someone applies to open a new checking account at a ChexSystems member bank, a ChexSystems inquiry is made. If the inquiry is returned stating that the person has had previous problems with another bank, that individual will often be denied from opening the account based on that ChexSystems report. For this reason ChexSystems is considered as a Consumer Reporting Agency. This makes ChexSystems subject to the same laws as the Credit Bureaus that we are all familiar with: Experian, Equifax, and Trans Union. And like the Credit Bureaus? ChexSystems does not approve nor decline new accounts. It only maintains, and reports, the information in their database which bank members have submitted to them. It is the individual bank who, based on the ChexSystems report, decides whether or not to approve the new account. Understandably? the majority of people in America who have the very common checking account, and never had a problem, have never heard of ChexSystems. But for the nearly 8 million people that ChexSystems has on file it is a very real problem. Many people feel ChexSystems has very quietly become the big brother of the banking industry. ChexSystems is a very necessary service for banks. On average financial institutions are hit with over $1 billion in check fraud losses a year. And they spend more than $200 million to prevent, detect, and prosecute check fraud. The criticism has been that there are no established guidelines for exactly who gets reported to ChexSystems. It is entirely up to the individual member banks. There are no procedures to distinguish between the person who may have had one or two unintentional incidents of bank overdrafts? and the individual who truly committed a serious act of fraud like passing numerous checks on a closed account. Depending on a particular bank's internal policies, a person could have their account closed and reported to ChexSystems for as little as one bounced check. Once in ChexSystems they are treated all the same, and the record can remain for 5 years. Bank executives defend the ChexSystems database as a valuable weapon in the battle against fraud and high-risk customers. To help prevent fraud and account abuse, banks and other financial institutions rely on the information from ChexSystems. They say it helps to keep banking services affordable and widely available to the general public. ChexSystems is also licensed as a debt collection agency. They have a separate department that assist participating members to collect on outsanding accounts. This also makes them subject to the Fair Debt Collection Practices Act (FDCPA) While ChexSystems is the most widely used database by the banking industry, other similar systems exist, such as TeleCheck, and National Check Protection & Data Verification Services. If you have recently been denied from opening a checking account due to a negative ChexSystems report, you are entitled to a free copy of that report. To contact ChexSystems by mail: ChexSystems, Inc.
Attn: Consumer Relations
7805 Hudson Road, Suite 100
Woodbury, MN 55125 Phone: 800-428-9623 or fax at 602-659-2197 Greg Ford is the owner and webmaster of http://www.chexsystemssolutions.com Additional information regarding options for people in ChexSystems can be found there.
Related News
Using credit wisely - Hindu
Using credit wiselyHindu, India -4 hours agoDespite the high risk of debt trap posed by credit cards, I am an optimist who believes that access to credit in a convenient, card-based form is probably ... |
Aryty explores phone credit service in India - The Statesman
Aryty explores phone credit service in IndiaThe Statesman, India -3 hours agoA US-based overseas pre-paid phone credit service, Aryty, is exploring the Indian market to facilitate calls and SMS chat to the USA and Canada. ... |
Bank gives credit - and donation - to Mission anti-development efforts - Bizjournals.com
Credit crunch: UBS piles $7.5bn on to its write-down bill - guardian.co.uk
Credit Card Overhauls Seem Likely - New York Times
Improved credit score could mean big savings - Chicago Tribune
Pawn shops booming in the credit crunch - Sunday Herald
Pawn shops booming in the credit crunchSunday Herald, UK -2 hours agoHaving fallen from 5000 in the early 20th century to around 800 thanks to improved credit terms and job security, Milligan said that there has been a 10% ... |
When Credit Gets Tight, a 401(k) Loan Becomes Tempting - New York Times
CGFS calls for credit ratings change - Financial News
Crisp snares the ball, but doesn't get credit - Boston Globe
|
|
 |
|
|
RELATED ARTICLES
Bounced Checks - Straight Talk On Dealing With Bad Checks (NSF)
A check can be considered bad if it is bogus or the NSF checks (non sufficient funds check), also referred as bounced check.
All About Balance Transfers
What is a balance transfer?
5 Ways To Raise Credit Score
It's not as hard as you think to raise credit score. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.
How To Survive In A Plastic World, Qualifying For Credit Card
Let's face it, having credit is no longer a choice. "Don't leave home without it" is more like "can't buy a home without it." Your credit now determines the neighborhood you live in, the kind of car you drive and, sometimes, even whether or not you get a particular job.
A Cure for an Ailing Credit
Credit has become a much-used word, thanks to the various connotations that it is being used in. Transactions in which the payment is deferred to the near future are termed as credit transactions.
Our World Of Credit Cards! Which One Is Right For You
There are not many of us who do not have a credit card these days. But, not all of us are as wise in the area of understanding how they work and how they make money. There are many types available to the young and old. Student credit cards even begin to get teenagers into the world of credit cards. Secured credit cards, cards that usually can't be written off, are even misleading in their name. So, what does that discover credit card in your wallet actually do for you?
Update Your Computer System With Bad Credit Computer Financing
The moment I placed myself in front of the computer screen a whole new world beckoned me to join it. And years of strolling have proved incompetent to get me acquainted with the full panorama of computers. You have always wanted one in your home. But something is stopping you. Bad credit? Do I hear bad credit? You think bad credit can stop you from getting your computer financed. Which world are you living in? You certainly need a computer. Computer financing for bad credit can enable you to get your very own home computer, lab tops, desk top or any other computer requirement.
Easing Your Financial Burdens With Credit Counseling
It is a well-publicized fact that more of us are getting ourselves into greater debt, and this may be true for you. The embarrassment of your financial situation can mean you are unlikely to seek credit counselling or other credit management solutions. Increased house prices and greater cost of living can force you to turn to heavy borrowing. While this works in the short term, it undoubtedly leads to greater financial burden in the future. Is there anything you can do to stop this trend in your life?
A No-Brainer Way Of Getting Credit And Credit Cards
What Is Your Credit Rating Now?
7 Ways To Squash Identity Theft
It is the scourge of our age: identity theft. Thieves learn an important part about your personal information, such as your credit card number, and they open accounts in your name and spend, spend, spend! Unfortunately, by the time you discover that you are a victim the damage is already done. Here are seven steps you can take to prevent identity theft.
19,178 Identity Theft Victims Per Day - Are You One Of Them?
Identity theft statistics are shocking. And we are told that it will only become worse, before it gets any better. Are you likely to be affected?
Fun with Credit Cards
For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I'm about to describe is not one of those illegal credit card schemes. Instead, I'm talking about taking full advantage of the benefits and offers that credit card companies and store chains offer their customers all the time.
Online Credit Report and Online Credit Reports
Online credit reports are easily accessible to those interested in viewing them. If you have wondered about what kind of credit score you have, you can go on the Internet and look at your online credit report. Most people are concerned that they have good credit and a solid standing with where they are financially. This is an important factor because it pretty much makes or breaks someone's ability to get a loan for something they may need later on down the road. Your online credit report is an encompassing reality of who you are as a spender-it can show literally every part of your financial history to date.
Saving Money with Credit Cards
Having a credit card is a wonderful convenience for those times when you don't have immediate access to your cash. It can allow you to purchase something on time for which you can pay later, thereby giving you the ability to afford something NOW that you'd have had to save for later. But buying on credit will also cost you money - in that way it's no different than taking out a loan to buy something that you want. There are, however, ways to save money when you buy with credit cards.
Warning: Free Credit Report Imposter Websites Springing Up on the Web
A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer credit reporting companies to provide consumers with a free copy of their credit report, upon request, once every 12 months.
Credit Cards -- What You Should Know
There are a lot of questions about using credit cards. Here's some important points for you:
My Credit Card Application Was Rejected! Now What?!?
No doubt, you've probably gotten literally hundreds of credit card applications in the mail and online, and each and every one of them has said that you've been "Pre-Approved".
Identity Theft ? Guard Your Childrens Social Security Numbers
Identity theft is a growing concern among Americans, and rates among the top five complaints received by states' Attorney General's offices. A stolen identity can lead to tens of thousands of dollars worth of debt in the victim's name and it can take years to completely undo the damage done to the victim's credit report. Identity thieves can successfully commit crime with as little as a driver's license number or credit card number, but the ideal target of such criminals is the Social Security number. With that number in hand, the identity thief can pass themselves off as the victim and open credit card accounts, bank accounts, and even obtain home equity loans. As more Americans become aware of the problems posed by identity theft, consumers are doing more to protect themselves. This has inspired thieves to look to a new source of identities to steal, and they have found one. They are now stealing the identities of children.
ChexSystems: Alternative Options for People Whove Been Checking Accounts
Individual banks elect to become members of ChexSystems, and to use their services.
The Next Person With Credit Problems Got Their First Credit Card Today!
One of the focus areas of my information is the absolute necessity of changing the way a person thinks about money and debt while in the process of repairing their credit. I have seen cases where a couple will work really hard for months, and finally get their credit report to the place they can borrow again and go out and buy something on credit just because they can. And I relate so strongly, because I was there at one time.
|
